STAR BUSINESS REPORT

The national budget for the coming year shows no clear shift in tax policy, as the system continues to depend heavily on indirect and trade taxes, according to economist Zaidi Sattar.

This keeps the tax structure regressive and places an unfair burden on low and lower-middle-income groups, said Sattar, the chairman of local think tank Policy Research Institute of Bangladesh (PRI).

This not only weighs on those least able to bear it but also holds back private initiatives, Sattar said at a post-budget discussion in Dhaka yesterday.

He described the government’s failure to rationalise tax exemptions as a missed opportunity.

Finance Adviser to the interim government Salehuddin Ahmed announced the Tk 7.90 lakh crore budget for fiscal year (FY) 2025–26 on June 2. It was passed on Sunday by the advisory council and will be effective from July 1.

Responding to criticism that the budget offers no real break from previous years, the finance adviser acknowledged his conservative approach and said the budget was drawn up with a focus on what was realistic and achievable.

Ahmed, also an economist and a former governor of the central bank, said the measures are to preserve macroeconomic stability and keep red-hot inflation in check.

At the post-budget talk titled “Budget Insights: Challenges and Opportunities Ahead” yesterday, Sattar welcomed these efforts, saying the focus on stabilisation is commendable in the face of inflationary pressures and external risks.